Apple CEO Tim Cook has announced at the new TSMC plant in Arizona that it will be using chips made in the state. Full story from the iMore Blog...
At what additional cost to the end user?????
Produce chips in the US then ship it to China India and Vietnam.
This is going to be terrible for the environment.
The elements to consider here are stability in supply chain, better worker conditions, and an international air freight exec family associate says likely more efficient or better utilization with air freight.
Stability of supply chain is highly unlikely, it is a small factory compared to the ones located in Asia, and by no means can it replace them if something happened to China/Taiwan.
Airfreight would still be detrimental to the environment compared to components manufactured and shipped within China., not to mention much more expensive.
It’s not sustainable when almost all of the supply chain is based in and around China.
The elements to consider here are stability in supply chain, better worker conditions, and an international air freight exec family associate says likely more efficient or better utilization with air freight.
Which are all cost factors when manufacturing that chip in the US. The price will go up. Then everyone will be complaining about that.
My understanding is a start, and part of a trend with several manufacturers.
Apple sells atleast
240 million iPhones every year
20-30 million macs a year
30-40 million iPads a year
That’s over 310 million processors per annum not counting Apple Watch, AirPods, HomePods, apple tvs, and apple displays that each utilize either an a,m,s, or h series soc.
This one factory isn’t even a beginning.
Foxconn hasn’t even started operating its Wisconsin factory, everyone just went silent on that one
I'm a WI resident hoping we won't have to pay for that mess. For that, keep in mind the Foxconn rescue/investment in Lordstown where they actually reached homologation a week or so ago.
For the rest, don't mistake my thinking the new US plant is an end all or total solution. My only point is we will likely keep seeing less concentration in manufacturing.
At what additional cost to the end user?????
Here’s hoping Wisconsin residents aren’t made to pay for someone else’s mess.
No idea about lordstown but it seems Foxconn is ramping up investment in India by another 500 million dollars. It makes sense given India’s proximity to China and the rest apples supply chain.
This is the interesting question with a potentially unattractive underbelly. How can a plant in the U.S. with higher worker cost, massively higher regulation, legal, insurance etc cost possibly make competitively priced chips versus a plant in China or Vietnam? Doesn’t the higher production cost have to cause a higher price for the iPhone?
The answer is surprisingly very much not necessarily. It’s in the details underbelly. Both federal and state governments go ‘pssst, don’t say anything but if you build the plant here we will double stack you up with tax credits’. This answers the question how a Tesla could be built in the staggeringly expensive Silicon Valley (big time tax credits).
Now if we just pray the government’s spending never must be paid by us taxpayers, it’s all a good deal for everyone.
In lots of scenarios manufacturing with lots of automation and sophistication means points of presence where things are not about the cheapest labor. It is much smaller scale than iPhone making or an auto plant, but a connection I have who is exec in a supplier to aircraft makers - commercial and military - describes his plants in different spots in the world. He says they need talent, people who are not crooks, and lots of other resources beyond labor and real estate costs. Friends of mine are in high tech sporting goods requiring skill and manufacturing prowess. They've brought making some most specialized and most expensive stuff back to US.
Stuff like that has me thinking we might not see same trends we've witnessed in recent decades.
Apple sells atleast
240 million iPhones every year
20-30 million macs a year
30-40 million iPads a year
That’s over 310 million processors per annum not counting Apple Watch, AirPods, HomePods, apple tvs, and apple displays that each utilize either an a,m,s, or h series soc.
This one factory isn’t even a beginning.
Foxconn hasn’t even started operating its Wisconsin factory, everyone just went silent on that one
As far as I know the Wisconsin “factory” has never been fitted out !